Market overview from globalCoal for September 7

Liquidity improved slightly in the physical market today, with value inching lower. November RB tonnes were heard trading $0.50/t lower than yesterdays best bid, while December RB changed hands at $121/t FOB - flat to yesterdays best bid. Paper closed slightly higher today, with Cal 12 API2 up $0.50/t, while the same contract on API4 mirrored these gains. Oil made decent gains throughout the session, with front month Brent crude up $2.57/bbl by 17:11 BST to sit at $115.46/bbl - the highest level for around a month.

Newcastle market traded sideways today, with a similar 123.50 deal done as yesterday for October. Early reports from a recent Chinese coal conference indicate that Chinese international coal requirements will again pick up for the balance of 2011, however the distinct price difference between local Chinese prices and International prices is a large obstacle seen by most. (*)

globalCoal trades this week

Product		Expiry	Price	Volume	Origin	Delivery Point	EFP
05/09/2011	Phys RB1	Dec'11	$ 121.50	75000
05/09/2011	Phys ARA (DES)	Dec'11	$ 128.00	50000	ACPRS	Ams/Rot	EFP
06/09/2011	Phys NEWC (FOB Newcastle)	Oct'11	$ 123.50	25000
06/09/2011	Phys ARA (DES)	Nov'11	$ 127.00	50000	ACPRS	Ams/Rot	EFP
06/09/2011	Phys NEWC (FOB Newcastle)	Dec'11	$ 125.25	25000			EFP
06/09/2011	Phys NEWC (FOB Newcastle)	Dec'11	$ 125.00	25000
06/09/2011	ICE gC NEWC Coal Future	Sep'11	$ 123.70	5000
06/09/2011	ICE gC NEWC Coal Future	Sep'11	$ 123.60	5000
07/09/2011	Phys NEWC (FOB Newcastle)	Oct'11	$ 123.50	25000
07/09/2011	Phys RB1	Dec'11	$ 121.00	75000			EFP
07/09/2011	Phys RB1	Dec'11	$ 121.00	75000